KEPALA BATAS: The Malaysia External Trade Development Corporation (Matrade) will continue engagement sessions with key stakeholders to strengthen coordination in supporting micro, small and medium enterprises (MSMEs) as they navigate an increasingly complex global trade environment.
Its chairman Datuk Seri Reezal Merican Naina Merican said Malaysia's trade strategy is now focused on diversification to reduce exposure to specific regions while strengthening the resilience of national exports.
He noted that Malaysia's exports to the Middle East currently account for about 2.7%, indicating room for expansion through broader market diversification.
"The strategy we are adopting is a two-pronged approach of market diversification and strengthening Free Trade Agreement (FTA) partnerships," he told reporters here on Sunday (April 26).
He said the first pillar involves expanding export destinations to more stable regions, including South-East Asia, Central Asia and Africa, which he described as relatively low-conflict zones.
"We look at regions that are more stable, such as South-East Asia, Central Asia and Africa, and we expand our market presence there," he said.
He said the second pillar focuses on leveraging FTA partnerships to widen market access through reduced or eliminated tariff barriers.
"Our FTA partners have already opened up significant access for us. Many tariff barriers are no longer in place, so we must take advantage of these opportunities to increase exports," he said.
Reezal said the strategy also includes a "regain and retain" approach by identifying markets where Malaysia can rebuild or maintain trade positions, including countries with relatively small trade deficits.
He highlighted the importance of addressing global supply chain disruptions, noting that while sectors such as electronics may be less affected, food-related and halal industries are more exposed due to their reliance on key consumer markets.
"There will certainly be impacts, especially for food products and the halal industry, as these depend heavily on major consumer markets in those regions," he said.
He stressed that a whole-of-government approach is essential, involving coordination across ministries and agencies, including the Entrepreneur Development and Cooperatives Ministry.
"This cannot be done by one ministry alone. It requires a whole-of-government approach," he said.
Reezal said the government has introduced the Business Guarantee Scheme (SJPP) worth about RM5bil to support MSMEs' liquidity and working capital needs, particularly as some markets are now demanding extended credit terms of up to six months.
"We will continue working closely with the ministry to create synergy and implement these initiatives jointly," he said.
Earlier, Reezal attended the Jualan Madani Koperasi & Usahawan (JMKU) at Permatang Sintok organised by the ministry.
Also present were Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong and the ministry's secretary-general Datuk Seri Khairul Dzaimee Daud.
